IFSL Brunsdon OEIC. Interim Report and Unaudited Financial Statements. for the period 1st March 2017 to 31st August 2017:

Transcription

1 IFSL Brunsdon OEIC Interim Report and Unaudited Financial Statements for the period 1st March 2017 to 31st August 2017: n IFSL Brunsdon Cautious Growth Fund n IFSL Brunsdon Adventurous Growth Fund Issue date: 31st October 2017

2 Contact Information The Company IFSL Brunsdon OEIC Registered and Head Office of the Company Marlborough House 59 Chorley New Road Bolton BL1 4QP Authorised Corporate Director (ACD) and Registrar Investment Fund Services Limited (IFSL) Marlborough House 59 Chorley New Road Bolton BL1 4QP (Authorised and regulated by the Financial Conduct Authority (FCA)) Investor Support Directors IFSL Andrew Staley Nicholas FJ Cooling Allan Hamer Wayne Green Dom Clarke Helen Redmond Helen Derbyshire Guy Sears (Non-Executive Director appointed 10th April 2017) John R Heap (Resigned 9th February 2017) Bernard J Leyland (Resigned 9th February 2017) Sponsor Brunsdon Financial Services Limited 18c Ley Court Barnett Way Barnwood Gloucester GL4 3BX (Authorised and regulated by the FCA) Investment Manager Brooks Macdonald Funds Limited 72 Welbeck Street London W1G 0AY (Authorised and regulated by the FCA) Custodian BNP Paribas Securities Services 10 Harewood Avenue London NW1 6AA (Authorised and supervised in France by the Autorité de Contrôle Prudentiel and by the Autorité des Marchês Financiers and authorised and subject to limited regulation by the FCA for the conduct of its investment business in the UK) Depositary National Westminster Bank plc 1st Floor 280 Bishopsgate London EC2M 4RB (Authorised by the Prudential Regulation Authority (PRA) and regulated by the FCA and PRA) Auditor Ernst & Young LLP Ten George Street Edinburgh EH2 2DZ 2 IFSL Brunsdon OEIC Interim Report 2017

3 Contents Page Report of the Authorised Corporate Director (ACD) Authorised Corporate Director s Statement Investment Manager s Report Summary of the Markets IFSL Brunsdon Cautious Growth Fund Investment Objective, Investment Policy and Investment Manager s Review Including: Material Portfolio Changes Fund Information Including: Fund Size; Distribution Summary; Pricing and Distribution Record; Ongoing Charges Figure (OCF); and Synthetic Risk and Reward Indicator Portfolio Statement and Portfolio Transactions Statement of Total Return Statement of Change in Net Assets Attributable to Shareholders Balance Sheet Notes to the Interim Financial Statements IFSL Brunsdon Adventurous Growth Fund Investment Objective, Investment Policy and Investment Manager s Review Including: Material Portfolio Changes Fund Information Including: Fund Size; Distribution Summary; Pricing and Distribution Record; Ongoing Charges Figure (OCF); and Synthetic Risk and Reward Indicator Portfolio Statement and Portfolio Transactions Statement of Total Return Statement of Change in Net Assets Attributable to Shareholders Balance Sheet Notes to the Interim Financial Statements General Information IFSL Brunsdon OEIC Interim Report 2017

4 IFSL Brunsdon OEIC Report of the Authorised Corporate Director (ACD) Constitution and Authorised Status The IFSL Brunsdon OEIC ( The Company ) is an open-ended investment company with variable capital incorporated under the Open-Ended Investment Companies Regulations The Company is a Non-UCITS Retail Scheme as defined in the Collective Investment Schemes Sourcebook (COLL) and is also an umbrella company for the purposes of the OEIC Regulations. The Company is incorporated in England and Wales with registered number IC The Company was authorised by an order made by the Financial Conduct Authority ( FCA ) with effect from 10th June The Sub-Funds The Company currently has two sub-funds: n n IFSL Brunsdon Cautious Growth Fund; and IFSL Brunsdon Adventurous Growth Fund Shareholders of the sub-funds do not have any proprietary interest in the underlying assets of the Company. The shareholders of the sub-funds will not be liable for the debts of the Company. The sub-funds are operated separately and the property attributed to each sub-fund is managed in accordance with the investment objective and policy applicable to the sub-fund. A share of each class represents a proportional entitlement to the assets of the sub-fund. The allocation of income and taxation and the rights of each share in the event that the sub-fund is wound up are on the same proportional basis. The sub-funds are segregated by law under the Protected Cell Regime. This means that in the event that one sub-fund in the Company is unable to meets its liabilities, the assets of another sub-fund within the Company may not be used to settle these liabilities. Cross Holdings The sub-funds of the Company do not hold shares in other sub-funds of the Company. Changes in Prospectus No changes have been made since the last report. Up to date Key Investor Information Documents, Prospectus and ACD s Reports and Financial Statements for any Company/sub-fund within the ACD s range can be requested by the investor at any time. Important Information On 10th March 2017 the administrative function of the Company transferred from BNP Paribas Securities Services to Investment Fund Services Limited. Leverage In accordance with the Alternative Investments Fund Managers Directive (AIFMD) we are required to disclose the leverage of each sub-fund. Leverage is defined as any method by which the sub-fund increases its exposure through borrowing or the use of derivatives. Exposure is defined in two ways: gross method; and commitment method. A sub-fund must not exceed maximum exposures under both methods. Gross method exposure is calculated as the sum of all positions of the sub-fund (both positive and negative), that is, all eligible assets, liabilities and derivatives, including derivatives held for risk reduction purposes. Commitment method is also calculated as the sum of all positions of the sub-fund (both positive and negative), but after netting off any derivative and security positions as specified by AIFMD rules. Therefore, the total amount of leverage calculated as at 31 August 2017 is as follows: IFSL Brunsdon Cautious Growth Fund Gross method: 94.36% (28th February 2017: 91.54%) Commitment method: 94.36% (28th February 2017: 91.54%) IFSL Brunsdon Adventurous Growth Fund Gross method: 95.99% (28th February 2017: 94.68%) Commitment method: 95.99% (28th February 2017: 94.68%) The maximum level of leverage which may be employed on behalf of the sub-fund when calculated in accordance with the gross method is 210%. The maximum level of leverage which may be employed on behalf of the sub-fund when calculated in accordance with the commitment method is 110%. 4 IFSL Brunsdon OEIC Interim Report 2017

5 IFSL Brunsdon OEIC Authorised Corporate Director s Statement This report has been prepared in accordance with the requirements of the Collective Investment Schemes Sourcebook as issued and amended by the Financial Conduct Authority. Allan Hamer Joint Managing Director Wayne D Green Joint Managing Director Investment Fund Services Limited (IFSL) Authorised Corporate Director of IFSL Brunsdon OEIC 31st October IFSL Brunsdon OEIC Interim Report 2017

6 IFSL Brunsdon OEIC Investment Manager s Report Summary of the Markets for the period 1st March 2017 to 31st August 2017 Markets endured another period of political and economic uncertainty but despite these events, the majority of equity markets performed well with, in particular, the European and Asian markets outperforming the rest of the world. Bond market returns were relatively muted. Throughout much of the period Brexit news flow has remained a key driver of UK asset markets and the value of sterling relative to other currencies. Although the secession s potential longer-term effects continue to concern business managers and policymakers, the domestic economy has remained relatively resilient. Sterling s devaluation has provided some support, as have additional easing measures from the Bank of England (including a boost to its asset purchase programme) and the government s plans to increase fiscal spending. However, political risk increased following the general election in the UK which initially resulted in a hung parliament and then a Conservative/Democratic Unionist Party (DUP) coalition. We have subsequently seen dissenters working with the opposition parties to block any substantial progress on divisive issues and the government will therefore have to make significant compromises to achieve its goals. Labour s better-than-expected performance is likely to lead to greater debate surrounding the removal of some of the government s austerity measures, potentially leading the domestic economic backdrop to become more inflationary in time. However, the election result could also mean that the UK will ultimately face a softer Brexit although this would potentially have positive implications for sterling, which would have follow-on effects for other UK assets. In Europe, Emmanuel Macron is now president of France which has been viewed positively by most, and the wider European equity market was the best performing in sterling terms over the period. The Eurozone economy continued its slow recovery, with unemployment falling and the threat of deflation diminishing amid rising global inflationary forces. The euro had a very strong period, particularly against sterling although this has, in recent weeks, started to reverse. Towards the end of the period investors have become increasingly focussed on central bank policy. Some relatively cautious comments from the Federal Reserve and slightly softer economic data from the world s largest economy has led to markets pushing back expectations of further rate rises in the US. The opposite has been happening in the UK with higher inflation and unexpectedly resilient economic data leading investors to conclude that the Bank of England may raise rates slightly sooner than anticipated. This has had an impact on bonds with gilts in particular struggling to eke out some modest returns over the period. Looking forward we expect news from central banks to be a key driver of market sentiment. Policy error remains a potential key risk but one which our portfolios are quite well positioned for. We broadly remain comfortable with equity exposure, especially to parts of the global investment market which may have been slightly unloved. We continue to be wary of certain assets such as gilts where we see significant potential risks. 6 IFSL Brunsdon OEIC Interim Report 2017

7 IFSL Brunsdon Cautious Growth Fund Investment Objective, Investment Policy and Investment Manager s Review for the period 1st March 2017 to 31st August 2017 Investment Objective The sub-fund will aim to provide capital appreciation over the medium to long term. Investment Policy The investment objective is pursued through a policy of primarily investing in units/shares of other collective investment schemes (both regulated and unregulated funds) in order to gain exposure to both UK and overseas gilts, bonds and equities. The sub-fund will aim to exhibit low to medium volatility over the medium to long term. The sub-fund may also invest in transferable securities, money market instruments, cash and near cash and deposits. The sub-fund may borrow and employ stock lending and underwriting techniques in accordance with the rules in the COLL. The sub-fund may invest in derivatives for the purposes of efficient portfolio management, including hedging. Investment Manager s Review The portfolio delivered strong absolute returns over the period outperforming the IA 0-35% Equity sector over the period. The portfolio was aided by having limited direct exposure to gilts which were broadly flat over the period. The portfolio has a higher weighting to corporate and high yield debt which both provided positive returns to the portfolio as a whole, outperforming gilts. Global bonds also performed particularly well, benefiting from diversification and a degree of exposure to emerging market debt. Returns from equities were more mixed although generally positive. Strongest performance came from our position in infrastructure but other international funds also performed well. It was a tougher period for our active UK funds some of which were impacted by stock specific issues and underperformed the wider UK market. We continue to feel that the active funds will deliver longer term returns in excess of that available from the broader UK market. Alternatives were also something of a mixed bag. Property funds generally performed very well although we had a position in a derivative based fund where returns were disappointing. The portfolio is overweight alternatives which are aiming to provide consistent absolute returns with low correlation to equity and fixed interest markets. These positions were only partially successful with one fund in particular struggling to provide positive returns. We did make changes to the portfolio over the period. We sold the underperforming North Row Liquid Property in favour of a fund of REITs a move which proved positive. We also sold an underperforming absolute return fund and added in an alternative which aims to provide a solid, consistent income with modest capital growth. We also sold out of an underperforming bond fund whilst slightly reduced the overall risk of the portfolio by selling our direct exposure to the US equity market. Material Portfolio Changes Major Purchases Cost ( 000) ETFS Lombard Odier Global Corporate Bond Fundamental GO ETF Dist USD 3,205 Legg Mason Western Asset Macro Opportunities Bond Premier Acc GBP Hedged 3,060 Investec Diversified Income J Acc 2,500 Fidelity Index World P Inc 2,500 F&C Real Estate Securities B Acc GBP 1,900 MI TwentyFour Dynamic Bond M Gross Inc 1,500 Royal London Sterling Credit Z (G) Inc 1,450 Jupiter Dynamic Bond I Q Inc GBP Hedged 900 F&C Commercial Property 308 Major Sales Cost ( 000) Legg Mason Western Asset Macro Opportunities Bond X Acc GBP Hedged 3,060 ishares MSCI World UCITS ETF USD Dist 2,556 NeubergerBerman Short Duration High Yield Bond GBP Institutional Dist 2,342 Kames UK Equity Absolute Return B Acc 1,813 L&G Dynamic Bond X Dist 1,602 IFSL North Row Liquid Property A Inc 767 Vanguard US Equity Index Institutional Plus Acc 697 ishares UK Property ETF GBP Dist 569 Other purchases 2 Total purchases for the period 17,325 Total sales for the period 13,406 7 IFSL Brunsdon OEIC Interim Report 2017

8 IFSL Brunsdon Cautious Growth Fund Fund Information Fund Size Net Asset Number of Net Asset Value Accounting Period Value ( 000) Base Shares per Share (Pence) Retail Accumulation 28th February ,615 20,034, th February ,027 3,508, th February , st August , Institutional Accumulation A 28th February , C Accumulation B 28th February ,698 3,612, th February ,329 33,493, th February ,046 41,092, st August ,852 44,252, A Closed 10th May B Launched 2nd January Distribution Summary Fund Accounting Dates Interim 31st August Final 28th February Distribution Payment Dates 31st October 30th April Pricing and Distribution Record Highest Share Lowest Share Net Accumulation Accounting Period Ended Price (Pence) Price (Pence) per Share (Pence) 28th February 2015 Retail Accumulation Institutional Accumulation C Accumulation A th February 2016 Retail Accumulation C Accumulation th February 2017 Retail Accumulation C Accumulation st August 2017 Retail Accumulation C Accumulation A 2nd January 2015 to 28th February Ongoing Charges Figure (OCF) 31st August th February 2017 Retail Accumulation 1.73% 1.76% C Accumulation 1.48% 1.51% The OCF of the sub-fund is the ratio of the total ongoing charges to the average net asset value for twelve months. Ongoing charges are all payments deducted from the assets of a Non-UCITS during the period, except for payments that are explicitly excluded by regulation. Past performance should not be seen as an indicator of future performance. 8 IFSL Brunsdon OEIC Interim Report 2017

9 IFSL Brunsdon Cautious Growth Fund Fund Information (continued) Synthetic Risk and Reward Indicator (all share classes) Lower risk Typically lower rewards Higher risk Typically higher rewards The rating is based on price volatility over the last five years, and is an indicator of risk. Historical data may not be a reliable indication for the future. The rating is not guaranteed to remain unchanged and may shift over time. The lowest rating does not mean a risk-free investment. The risk indicator for the sub-fund is as above because there is significant exposure to stock markets and bonds. Stock market prices can move irrationally and can be affected unpredictably by diverse factors, including political and economic events. Credit risk and/or changes to interest rates will have a significant impact on the performance of bonds. The sub-fund has been measured as 3 because it has experienced low to moderate volatility historically. During the period the Synthetic Risk and Reward Indicator has remained unchanged. 9 IFSL Brunsdon OEIC Interim Report 2017

10 IFSL Brunsdon Cautious Growth Fund Portfolio Statement as at 31st August 2017 Market Percentage of Holding Investment Value Total Net Assets 000 % UK Large Cap Equities (10.24%) 1,346,336 Fidelity Enhanced Income W Inc 1, ,004 Trojan Income O Inc 1, ,539 Vanguard FTSE UK All Share Index A Inc GBP 2, North American Large Cap Equities (1.53%) 4, International Equities (11.33%) 942,888 Artemis Global Income I Acc GBP 1, ,008 BNY Mellon Newton Global Income Institutional W Inc 1, ,706,019 Fidelity Index World P Inc 2, , Thematic Equities (4.09%) 1,280,621 Lazard Global Listed Infrastructure Equity A Dist GBP 2, , UK Corporate Bonds (17.49%) 3,643,801 Artemis Strategic Bond I Dist GBP 2, ,727,993 Fidelty MoneyBuilder Income Y Inc 2, ,314,242 M&G Optimal Income I Inc Sterling 1, ,088,720 Royal London Sterling Credit Z (G) Inc 3, , High Yield Bonds (20.80%) 2,268,748 AXA US Short Duration High Yield ZI Net Inc GBP 2, ,185 Legg Mason Western Asset Macro Opportunities Bond Premier Acc GBP Hedged 3, , Global Corporate Bonds (11.62%) 404,800 ETFS Lombard Odier Global Corporate Bond Fundamental GO ETF Dist USD 3, ,919 Jupiter Dynamic Bond I Q Inc GBP Hedged 2, ,855 MI TwentyFour Dynamic Bond M Gross Inc 3, , Sovereign Bonds (nil) 222,000 ETFS Lombard Odier Global Government Bond Fundamental GO ETF Dist GBP Hedged 2, , Alternatives (Nil) 2,073,946 Investec Diversified Income J Acc 2, , Real Estate (5.80%) 1,161,534 F&C Commercial Property 1, ,706 F&C Real Estate Securities B Acc GBP 1, , Hedge (10.79%) 1,535,542 Aviva Multi-Strategy Target Income 2 Inc GBP 1, ,424 Polar Capital Global Convertible S Dist GBP 1, , Portfolio of Investments 47, Net current assets 2, Net Assets 50, The figures in brackets represent the percentage holdings as at 28th February IFSL Brunsdon OEIC Interim Report 2017

11 IFSL Brunsdon Cautious Growth Fund Portfolio Statement (continued) The investments of the sub-fund have been valued at their fair value at 12 o clock midday on 31st August Fair value is normally the bid value of each security by reference to quoted prices from reputable sources; that is the market price. If the ACD believes that the quoted price is unreliable, or if no price exists, a valuation technique is used whereby fair value is the ACD s best of a fair and reasonable value for that investment. The fair value excludes any element of accrued interest. Portfolio Transactions for the Period from 1st March 2017 to 31st August Total purchases, including transaction charges 17,325 Total sales proceeds, net of transaction charges 13, IFSL Brunsdon OEIC Interim Report 2017

12 IFSL Brunsdon Cautious Growth Fund Statement of Total Return for the period 1st March 2017 to 31st August 2017 Income 31st August st August Net capital gains 841 2,416 Revenue Expenses (214) (180) Net revenue before taxation Taxation (67) (42) Net revenue after taxation Total return before distributions 1,302 2,831 Distributions (461) (415) Change in Net Assets Attributable to Shareholders from Investment Activities (see below) 841 2,416 Statement of Change in Net Assets Attributable to Shareholders for the period 1st March 2017 to 31st August st August st August Opening net assets attributable to shareholders 46,026 37,356 Amounts receivable on issue of shares 7,288 6,627 Amounts payable on cancellation of shares (3,946) (4,713) 3,342 1,914 Change in net assets attributable to shareholders from investment activities 841 2,416 Retained distributions on accumulation shares Closing Net Assets Attributable to Shareholders (see above) 50,688 42,116* * With respect to the Statement of Change in Net Assets Attributable to Shareholders the comparative figures are from the prior period s interim and this is the reason why the Opening Net Assets Attributable to Shareholders for the current period does not equal the Closing Net Assets Attributable to Shareholders. 12 IFSL Brunsdon OEIC Interim Report 2017

13 IFSL Brunsdon Cautious Growth Fund Balance Sheet as at 31st August st August th February Assets Fixed Assets: Investment assets 47,926 43,121 Current Assets: Debtors Cash and bank balances 2,994 3,592 Total Assets 51,222 46,935 Liabilities Creditors: Other creditors Total Liabilities Net Assets Attributable to Shareholders 50,688 46,026 Notes to the Interim Financial Statements for the period 1st March 2017 to 31st August 2017 Basis for Preparation The interim financial statements have been prepared in compliance with Financial Reporting Standard 102 and in accordance with the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Management Association (now known as The Investment Association) in May The financial statements have been prepared in sterling which is the functional currency of the sub-fund. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments and certain financial instruments at fair value. Accounting Policies The accounting policies applied are consistent with those of the annual financial statements for the year ended 28th February 2017 and are described in those annual financial statements. 13 IFSL Brunsdon OEIC Interim Report 2017

14 IFSL Brunsdon Adventurous Growth Fund Investment Objective, Investment Policy and Investment Manager s Review for the period 1st March 2017 to 31st August 2017 Investment Objective The sub-fund will aim to provide capital appreciation over the medium to long term. Investment Policy The investment objective is pursued through a policy of primarily investing in units/shares of other collective investment schemes (both regulated and unregulated funds) in order to gain exposure to both UK and overseas equities, and gilts and bonds. The sub-fund may also invest in transferable securities, money market instruments, cash and near cash and deposits. The investments will aim to reflect a higher than normal level of risk and volatility over the medium to long term. The sub-fund may borrow and employ stock lending and underwriting techniques in accordance with the rules in the COLL. The sub-fund may invest in derivatives for the purposes of efficient portfolio management, including hedging. Investment Manager s Review The portfolio delivered strong absolute returns over the period outperforming the IA Flexible sector over the period. Several parts of the portfolio were exceptionally strong contributors to overall returns. Asia and Emerging Markets were very strong with the Baillie Gifford Emerging Markets fund delivering returns in excess of 21% over the period. UK small cap was also a very strong performer as investors once again turned their attention to UK domestic companies which had been quite badly impacted post-brexit. We also maintained a position in the City Financial Absolute Equity which declined heavily in the latter part of 2016 but recovered all its losses this year and was a contributor to overall returns Returns from UK large caps were generally positive although those funds that had a higher weighting to small and mid-cap positions tended to outperform. Some funds were impacted by stock specific issues. Our European exposure also performed well as did Japan. However, returns from the US were generally negative as the dollar weakened and the US markets paused for breath especially within the technology sector. US small caps also disappointed and were the largest fallers over the period. We made a few changes to the portfolio over the period. We increased exposure to Europe following the first round of the French elections. European markets had been suffering from increased political risk but the results were encouraging and European companies are looking good value when compared to many global peers. We also added slightly to UK small caps where we think there is further value to be found. Material Portfolio Changes Major Purchases Cost ( 000) Fidelity Index World P Inc 2,500 Hermes US SMID Equity F Dist Stg 1,400 Legal & General European Index C Acc 1,300 Old Mutual UK Smaller Companies Focus R Inc GBP 575 Fidelity Index Japan P Inc 500 GVQ UK Focus I 400 Schroder European Alpha Income Z Inc GBP Hedged 400 Vanguard FTSE UK All Share Index A Inc GBP 400 Baillie Gifford Emerging Markets Growth B Acc 250 Stewart Asia Pacific Leaders B Acc GBP 250 Major Sales Proceeds ( 000) ishares MSCI World ETF USD Dist 2,619 Findlay Park American USD 1,449 ishares UK Property UCITS ETF Dist 579 Other purchases 286 Total purchases for the period 8,261 Total sales for the period 4, IFSL Brunsdon OEIC Interim Report 2017

15 IFSL Brunsdon Adventurous Growth Fund Fund Information Fund Size Net Asset Number of Net Asset Value Accounting Period Value ( 000) Base Shares per Share (Pence) Retail Accumulation 28th February ,827 17,652, th February ,509 3,799, th February , , st August , Institutional Accumulation A 28th February , C Accumulation B 28th February ,757 2,636, th February ,592 23,455, th February ,477 32,104, st August ,356 35,143, A Closed 10th May B Launched 2nd January Distribution Summary Fund Accounting Dates Interim 31st August Final 28th February Distribution Payment Dates 31st October 30th April Pricing and Distribution Record Highest Share Lowest Share Net Accumulation Accounting Period Ended Price (Pence) Price (Pence) per Share (Pence) 28th February 2015 Retail Accumulation Institutional Accumulation C Accumulation A th February 2016 Retail Accumulation C Accumulation th February 2017 Retail Accumulation C Accumulation st August 2017 Retail Accumulation C Accumulation A 2nd January 2015 to 28th February Ongoing Charges Figure (OCF) 31st August th February 2017 Retail Accumulation 1.79% 1.83% C Accumulation 1.54% 1.58% The OCF of the sub-fund is the ratio of the total ongoing charges to the average net asset value for twelve months. Ongoing charges are all payments deducted from the assets of a Non-UCITS during the period, except for payments that are explicitly excluded by regulation. Past performance should not be seen as an indicator of future performance. 15 IFSL Brunsdon OEIC Interim Report 2017

16 IFSL Brunsdon Adventurous Growth Fund Fund Information (continued) Synthetic Risk and Reward Indicator (all share classes) Lower risk Higher risk Typically lower rewards Typically higher rewards The rating is based on price volatility over the last five years, and is an indicator of risk. Historical data may not be a reliable indication for the future. The rating is not guaranteed to remain unchanged and may shift over time. The lowest rating does not mean a risk-free investment. The risk indicator for the sub-fund is as above because there is significant exposure to stock markets and bonds. Stock market prices can move irrationally and can be affected unpredictably by diverse factors, including political and economic events. Credit risk and/or changes to interest rates will have a significant impact on the performance of bonds. The sub-fund has been measured as 4 because it has experienced moderate volatility historically. During the period the Synthetic Risk and Reward Indicator has remained unchanged. 16 IFSL Brunsdon OEIC Interim Report 2017

17 IFSL Brunsdon Adventurous Growth Fund Portfolio Statement as at 31st August 2017 Market Percentage of Holding Investment Value Total Net Assets 000 % UK Large Cap Equities (26.39%) 59,081 GVQ UK Focus I 1, ,322,657 JOHCM UK Equity Income Y Dist 1, ,270 Liontrust Special Situations I 2, ,755 Old Mutual UK Mid Cap R Acc GBP 1, ,432 Trojan Income O Inc 1, ,431 Vanguard FTSE UK All Share Index A Inc GBP 3, , UK Small Cap Equities (4.45%) 219,565 Old Mutual UK Smaller Companies Focus R Inc GBP ,271 River and Mercantile UK Equity Smaller Companies B Inc 2, , North American Large Cap Equities (14.99%) 2,217,612 Fidelity Index US P Acc 4, ,021 JPM US Equity Income C Net Inc 2, , North American Small Cap Equities (6.84%) 748,823 Hermes US SMID Equity F Dist Stg 1, ,780 ishares MSCI USA Small Cap ETF Acc USD 1, , European Large Cap Equities (6.05%) 311,981 Legal & General European Index C Acc 1, ,477,410 Schroder European Alpha Income Z Inc GBP Hedged 3, , Japanese Equities (2.47%) 343,006 Fidelity Index Japan P Inc ,580 ishares MSCI Japan ETF Acc GBP Hedged 1, , Asia Pacific ex Japan Equities (9.35%) 6,064 Schroder Asian Total Return C Dist GBP 2, ,968 Stewart Asia Pacific Leaders B Acc GBP 2, , Emerging Markets Equities (4.50%) 175,966 Baillie Gifford Emerging Markets Growth B Acc 1, ,749 Fidelity Emerging Asia Y Acc USD 1, , International Equities (11.81%) 1,706,019 Fidelity Index World P Inc 2, ,340 River and Mercantile World Recovery B Inc 1, ,857 Standard Life Global Smaller Companies Institutional Acc 1, , European Corporate Bonds (0.00%) 317 M&G European Corporate Bond A Acc Sterling High Yield Bonds (4.12%) 154,989 Neuberger Berman High Yield Bond I Dist GBP 1, Real Estate (1.39%) 1, Hedge (2.11%) 277,872 City Financial Absolute Equity I Inc IFSL Brunsdon OEIC Interim Report 2017

18 IFSL Brunsdon Adventurous Growth Fund Portfolio Statement (continued) Market Percentage of Holding Investment Value Total Net Assets 000 % Portfolio of Investments 44, Net current assets 2, Net Assets 46, The figures in brackets represent the percentage holdings as at 28th February The investments of the sub-fund have been valued at their fair value at 12 o clock midday on 31st August Fair value is normally the bid value of each security by reference to quoted prices from reputable sources; that is the market price. If the ACD believes that the quoted price is unreliable, or if no price exists, a valuation technique is used whereby fair value is the ACD s best of a fair and reasonable value for that investment. The fair value excludes any element of accrued interest. Portfolio Transactions for the Period from 1st March 2017 to 31st August Total purchases, including transaction charges 8,261 Total sales proceeds, net of transaction charges 4, IFSL Brunsdon OEIC Interim Report 2017

19 IFSL Brunsdon Adventurous Growth Fund Statement of Total Return for the period 1st March 2017 to 31st August 2017 Income 31st August st August Net capital gains 1,971 3,601 Revenue Expenses (194) (149) Net revenue before taxation Taxation Net revenue after taxation Total return before distributions 2,157 3,773 Distributions (186) (172) Change in Net Assets Attributable to Shareholders from Investment Activities (see below) 1,971 3,601 Statement of Change in Net Assets Attributable to Shareholders for the period 1st March 2017 to 31st August st August st August Opening net assets attributable to shareholders 40,776* 28,101 Amounts receivable on issue of shares 6,060 6,899 Amounts payable on cancellation of shares (2,765) (3,917) 3,295 2,982 Change in net assets attributable to shareholders from investment activities 1,971 3,601 Retained distributions on accumulation shares Closing Net Assets Attributable to Shareholders (see above) 46,237 34,863* * With respect to the Statement of Change in Net Assets Attributable to Shareholders the comparative figures are from the prior period s interim and this is the reason why the Opening Net Assets Attributable to Shareholders for the current period does not equal the Closing Net Assets Attributable to Shareholders. 19 IFSL Brunsdon OEIC Interim Report 2017

20 IFSL Brunsdon Adventurous Growth Fund Balance Sheet as at 31st August st August th February Assets Fixed Assets: Investment assets 44,224 38,521 Current Assets: Debtors Cash and bank balances 1,880 2,191 Total Assets 46,387 40,817 Liabilities Creditors: Other creditors Total Liabilities Net Assets Attributable to Shareholders 46,237 40,776 Notes to the Interim Financial Statements for the period 1st March 2017 to 31st August 2017 Basis for Preparation The interim financial statements have been prepared in compliance with Financial Reporting Standard 102 and in accordance with the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Management Association (now known as The Investment Association) in May The financial statements have been prepared in sterling which is the functional currency of the sub-fund. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments and certain financial instruments at fair value. Accounting Policies The accounting policies applied are consistent with those of the annual financial statements for the year ended 28th February 2017 and are described in the annual financial statements. 20 IFSL Brunsdon OEIC Interim Report 2017

21 General Information It is important to remember that the price of shares, and the income from them, can fall as well as rise and is not guaranteed and that investors may not get back the amount originally invested. Past performance is not a guide to future performance. Changes in the rate of exchange of currencies, particularly where overseas securities are held, may also affect the value of your investment. The issue of shares may be subject to an initial charge and this is likely to have an impact on the realisable value of your investment, particularly in the short term. You should always regard an ICVC investment as long term. Prospectus Copies of the Company s Prospectus are available free of charge from the ACD upon request. Share Type The Company issues the following shares: Fund Class ( ) Income or Accumulation IFSL Brunsdon Cautious Growth Retail, C Accumulation IFSL Brunsdon Adventurous Growth Retail, C Accumulation Pricing and Dealing Mid prices are always quoted for shares in the sub-funds. Dealing in all ICVCs operated by IFSL Ltd may be carried out between 9.00 am and 5.00 pm on any business day. Applications can be made either by completing an application form and delivering it to the ACD at IFSL (Brunsdon), Marlborough House, 59 Chorley New Road, Bolton BL1 4QP, or through approved agents. The Company deals on a forward basis, which means that orders received will be dealt with at the price calculated at the next valuation point. Share prices are calculated daily at the valuation point of 12 o clock midday, and applications for shares should be received by this time to ensure inclusion in the that valuation point. Publication of Prices The prices of shares in the sub-funds are currently quoted daily on the web page Alternatively you can contact us on (9.00 am to 5.00 pm Monday-Friday excluding bank holidays) and we will be happy to provide you with the most recent price of your shares. 21 IFSL Brunsdon OEIC Interim Report 2017

22 This report contains FTSE data. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. Investment Fund Services Limited Registered in England No (Authorised Corporate Director for IFSL Brunsdon Funds). Authorised and regulated by the Financial Conduct Authority. This document has been issued by Investment Fund Services Limited. The information contained in this document may not be reproduced in any form without the express permission of Investment Fund Services Limited and to the extent that it is passed on care must be taken to ensure that this is in a form which accurately reflects the information presented here. Whilst Investment Fund Services Limited believes that the information is correct at the date of this production, no warranty or representation is given to this effect and no responsibility can be accepted by Investment Fund Services Limited to any intermediaries or end users for any action taken on the basis of the information /2017. Designed and produced by